Material options missing?
The difference in the material's options are in the renderer engine. On the video you are seeing, the author is using Blender Render (also named Blender Internal), and you are using Cycles. If you change to Blender Render



the options will be the same, yet I would suggest you to search for a tutorial using Cycles. About Lambert, is a kind of algorithm for reflections, or how the way the light gets diffused in the object. See the follofing image for examples on other kinds of similar algorithms, and you'll understand what i'm saying: http://what-when-how.com/wp-content/uploads/2012/07/tmpcd00152_thumb.png